The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-08-12
To the Property Holders
IN T II T. -
HAWAIIAN KINGDOM.

Your attention Is espectfUlly invited to the
+ advantages which would be offered by Home
. Mutual Fire and Marine Insurance Company tC
all parties who have occasion to seek the protec-
/ ton Of Insurance in this Kingdom against fire
and marine losses.
1t Is not pro posed at this time TO canvass The
sub jet exlaustivsiy, but only to point out some
/ Of the more important features, which may be
( added 10 later on.
/ A glance at the present condition of Fire In
s surauce in this country may enable Us to see
more clearly the prospective advantages Of the
proposed scheme.
Previous TO the great FIRE in Honolulu OF the
18th Of april, 1856, the Fire Insurance rates ex-
acted by the companies doing business in this
country. were on such scale as to make this
one the most desirable fields Of its size in the
world for that class Of operations.
1t has frequently been affirmed by various
local agents that the risks taken here worked in
the end a loss to the underwriters, or in other
words, that the aggregate OF losses paid by the
several companies on policies issued in this
Kingdom exceeded the amount Of premiums re-
United to the home Offices and that the Hawaiian
public should be thankful to these companies
for taking compassion on US, and reimburse y
our losses with hard coin; These assertions
have been made Notwithstanding the fact that
the profits of the business have been sufficiently
tempting TO induce over thirty companies, hail
ing from all parts Of the business world to es-
tabHsh agencies in this city. which under
healthy methods of management, or easonable
rates, would seem 70 be out Of all proportion to
the extent of the field of operation.
Even a very indifferent knowledge of the laws
OF business and the causes prompting the in
vest1nent of capital and the taking of CONNER
ciaI risks and ventures do not confirm the truth
of these statements; the contrary their fallacy
becomes more and more apparent at every step.
Shortly after the FIRE already mentioned, the
local insurance agents formed themselves into
a board, nd advanced the rates to figures, which
in many cases were prohibitive, and numbers
who formerly carried policies have either re-
duced their amounts of insurance, or taken the
risks themselves. This increase on the part of
the underwriters would hardly seem fair or
even wise in view of the fact that the space
desoIated by the late fire, and which was the
most dangerous part of the city, has since been
mostly included, by statute, in the hre-proOt
limit, a great portion of which has been COW
cred by substantial brick buildings with regu-
lation Prevails. The water supply OF the city
has been largely Increased; the apparatus of the
Fire Department greatly added to, and its or
ganization, numbers and efficiency much i'm
all who are acquainted with the city would
seem to have furnished good grounds for re-
ducing rather than increasi ng the rates of Fire
Insurance.
The idea of local companies of the character
proposed is by no means eXperime ntal, as many
instances both on the Pacific Coast and in the
older States Of the Union might he cited. which
have not only proved financially successful, but
under judicious management have greatly ex-
ended the benefits and protection of Insurance
amongst those who stand n greatest need of this
class of assistance.
1t would seem only fair and just that commu-
nifty paying the heavy taxes levied by Fire In
surance Companies should share in whatever
profits may accrue from the business by the
of these profits in the form of
divide nds and this result can be attained in no
way more readily than through the mutual sys-
tenn, and the proposition is to organize local
company on this basis.
1t is proposed to call meeting of subscribers
to the stock as soon as the amount reaches Two
Hundred Thousand Dollars for the purpose of
organizing and applying for Charter OF Incor-
poration.
= Accompanying this is a subscription list for
stock, also another for applications for insur-
ance, to which you are respectfully solicited to
The foregoing is merely outline which
would be properly filled up in detail by
the stockholders themselves, if the scheme
meets with public favor and support.
Honolulu,